The Council for Medical Schemes recently published Circular 2 of 2024, on the adjustment of fees payable to healthcare brokers. The Minister of Health has approved an increase on the maximum fee that is payable by medical schemes to brokers for introducing a member to a medical scheme and providing the member with ongoing service or advice, with effect from 1 January 2024. Regulation 28(2) published in terms of the Medical Schemes Act, now effectively states that the maximum fee is:
a) R116.74 plus value added tax (VAT) per month; or
b) 3% plus value added tax (VAT) of the contributions payable in respect of that member,
whichever is the lesser.
FSPs licensed for Health Service Benefits are reminded to adjust the fees on all documentation which discloses this commission to clients.